Climbing out of recession still an issue

Thursday, 29 October 2009, 10:43 am
Press Release: New Zealand Council of Trade Unions

CTU media release
29 October 2009

Climbing out of recession still an issue

The signal today from the Reserve Bank that the OCR would not lift until the second half of 2010 is a clear indication that inflation is not an issue in the economy at this time but climbing out of the recession still is, said CTU Economist and Policy Director Bill Rosenberg.

“A long period of recovery with relatively high levels of unemployment is still forecast, even though the levels are not as high as previously predicted. We are still seeing layoffs, and as the Reserve Bank comments, any recovery is still fragile,” said Rosenberg.

“If anything, a further reduction in the OCR should be considered.”

“There is also a case for the Reserve Bank to use new tools such as making low interest finance available for productive investment.”

ENDS

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New Zealand Council of Trade Unions

Te Kauae Kaimahi

The New Zealand Council of Trade Unions Te Kauae Kaimahi brings together over 350,000 New Zealand union members in 40 affiliated unions. We are the united voice for working people and their families in New Zealand.

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